US Federal Reserve Chairman Jerome Powell said this week that the central bank cannot end emergency measures too soon. Powell has again called on Congress to pass additional fiscal stimulus. . .
According to Schiff, traders know it doesn’t really matter what happens with Covid. They understand that it’s the stimulus that has kept the market blown up over the last several months when it should have sold off due to the economic impact of the pandemic.
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“Because of all the cheap money, the artificially low interest rates, the money printing, that’s what caused the market to go up. I think that traders recognize that, even if Covid goes away, that cheap money is here to stay. Because if traders believed that the end of Covid also meant the end of zero percent interest rates and quantitative easing, stocks would not be rallying on a Covid vaccine. They would be getting killed on a Covid vaccine because the vaccine would kill all the stimulus.”
US economy on such massive jolt of monetary heroin there’s no dialing back the dosage – Peter Schiff
Economist Peter Schiff explains that, thanks to the Federal Reserve and all the stimulus, the market is higher post-Covid than it was pre-Covid.
“So, why should any positive news be positive for stocks when the negative news wasn’t negative for stocks?”
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